Two Forecasting Models Were Used to Predict the Future Values

question 6

Essay

Two forecasting models were used to predict the future values of a time series.The forecasts are shown below with the actual values. Calculate the mean squared deviation (MSD)for Model 2

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Definitions:

Parametric Counterpart

A statistical test or model that is based on assumptions about the parameters (e.g., mean, variance) of the population distribution from which the sample is drawn.

Nonparametric Test

A type of statistical test that does not assume a particular distribution for the data, often used when data do not meet the assumptions of parametric tests.

Independent Samples

Two or more groups of data that are collected from different populations or treatment conditions, with no overlapping members between groups.

Parametric One-way Analysis

A statistical technique used for comparing means of three or more samples, assuming a normal distribution.